VEMEX registered public investment.
Investment published on: 2011-03-17 20:15:00.
Investment name: Collateral Holding Terms
NEISIN code: MRVAHFTCH019.
Official discussion: link to EvE forum prospectus.
Public Investments Archive for this investment: backlink.
Official audit: N.A.
Public Audits Records for this investment’s audit: N.A.
Type: Collateral management.
Archived by: Vaerah Vahrokha.
MRVAHFTCH019 Terms of Collateral Holding~1~
Abudman X – Moon 10 – Urban Management Bureau Office
Establishment of Terms of Collateral Holding
on the 17th March YC 113
ARTICLE I – DEFINITIONS
1. Third Party Collateral Holder is a trusted individual, institution or corporation acting on behalf of two parties.
2. Collateral is one or a collection of assets held in escrow by a Third Party Collateral Holder. These assets guarantee a fair transaction between the parties the Third Party Collateral Holder acts on behalf of.
3. Contractor is the individual, institution or corporation issuing Collateral. Example: bond Investee.
4. Contractor Counterpart is the individual, institution or corporation being secured by Collateral. Example: bond Investors.
ARTICLE II – COLLATERAL ATTRIBUTES
1. Collateral may be given one or more of the following attributes:
(i) Undepreciable. Example: Blue Print Originals.
(ii) Susceptible to variations in worth. Example: ships, high traded volume modules.
(iii) Highly susceptible to variations in worth, speculative. Example: Robotics.
(a) Quick to liquidate. Example: Blue Print Originals, Tritanium.
(b) Slow to liquidate. Example: Several COSMOS items.
(1) Easy to liquidate. Example: Unresearched BPO at Jita IV – Moon 4.
(2) Hard to liquidate. Example: Rigged missioning ship in 0.0 security space.
2. Collateral attribute combinations. Collateral may have one or more of the attributes covered by Paragraph 1. Vahrokh Financial Technologies will accept, assign value to and prioritize Collateral depending on its attributes.
ARTICLE III – COLLATERAL ACCEPTANCE
1. Vahrokh Financial Technologies will decide whether to accept the proposed Collateral or not, at its sole discretion.
2. Vahrokh Financial Technologies will assign a value to the proposed Collateral at its sole discretion. Any judgement about Collateral value is final and unquestionable.
3. When evaluating Collateral value, Vahrokh Financial Technologies will follow some criteria. These are guidelines whose purpose is to safeguard the Contractor Counterparts in case Collateral has to be liquidated. The proposed terms are not binding, Vahrokh Financial Technologies reserves any discretion about the adopted evaluation criteria, for each individual case.
ARTICLE IV – GENERAL COLLATERAL EVALUATION CRITERIA
1. Undepreciable, quick and easy to liquidate Collateral is is considered Class A. It is the preferred kind and takes priority over anything else. Example: Blue Print Originals. In case of Blue Print Originals, their fair value will be considered equal to their NPC sale value.
2. Depreciable, quick and easy to liquidate Collateral is considered Class B. Examples: ships, high traded volume modules. In case of ships, rigs value is always considered equal to zero.
3. Depreciable, slow but easy to liquidate Collateral is considered Class C. Examples: items to sell on contracts, low volume traded modules.
4. Depreciable, hard to liquidate Collateral is considered Class D. Examples: ships in 0.0 space, freighter sized items or volumes located at low security space.
5. Speculative, quick and easy to liquidate Collateral is considered Class E. Examples: Robotics, Technetium, PLEXes. Items are considered speculative when their price volatility is high. To determine Collateral volatility, its price will be analyzed both with actuarial methods and Technical Analysis including Average True Range calculation over 30 periods.
6. Collateral kinds that are not covered by the paragraphs above shall not be accepted.
ARTICLE V – COLLATERAL EQUIVALENT VALUE
1. Each Collateral class has an equivalent value. The equivalent value is a percentage expressing how much Collateral value shall be provided to cover 100% of the asked amounts.
(i) 110% of Class A Collateral shall be provided to cover 100% of the asked amounts plus interests plus expenses.
(ii) 120% of Class B Collateral shall be provided to cover 100% of the asked amounts plus interests plus expenses.
(iii) 130% of Class C Collateral shall be provided to cover 100% of the asked amounts plus interests plus expenses.
(iv) Class D Collateral equivalent value shall be calculated on a by case basis.
(v) 150% of Class E Collateral shall be provided to cover 100% of the asked amounts plus interests plus expenses.
2. Adjustments. Vahrokh Financial Technologies shall apply adjustments to the Collateral equivalent value at its sole discretion. Contractors may negotiate better terms for Collateral Classes B, C and E. Accepted instruments for negotiation are:
(i) Collateral Insurance.
(ii) Hedged or shorted Futures contract for an equivalent equity value.
(iii) Zero sum of Collateral and hedged Collateral complimentary assets.
In order to be accepted, these instruments must be issued by Vahrokh Financial Technologies or an official partner.
ARTICLE VI – COLLATERAL RESEARCH OR PRODUCTION
1. Contractors may request to have their Collateral improved, reasearched or products to be manufactured with it.
2. Held Blue Print Originals may be researched for whatever duration. An additional fee may be applied to cover research costs. The Contractor will have to supply the needed Blue Print research consummables, if they are required.
3. Contractors may request Vahrokh Financial Technologies to use Held Blue Print Originals for production. Contractors will take any expense and logistics and will pay an additional fee.
4. The Third Party Collateral Holder may decide to round up / extend the research for no additional charge. The Contractor may decide to opt out of this additional free research before it’s started.
ARTICLE VII – LATE PAYMENTS
1. Contractors shall pay both their Counterparts and the Third Party Collateral Holder by the agreed date. The agreed date constitutes binding and final terms.
2. In case the Contractor won’t honor his agreed diligence within 3 (three) days of the binding stated terms, he will be considered unsolvant but recoverable. He will be applied a fine equivalent to 2% of the principal plus interests plus expenses per day of late payment.
3. The unsolvant but recoverable status will last for 7 (seven) days, to be added to the 3 days indicated at Paragraph 2 herein.
ARTICLE VIII – EXPIRED PAYMENTS, DEFAULT
1. In case the Contractor won’t be found any more, is unable to pay or won’t honor his agreed diligence within the terms stated at Article VII Paragraph 3, he will be declared in default. Research and production done on the Collateral will be immediately halted. Contractor Counterparts may negotiate other terms with the Third Party Collateral Holder. Collateral will be liquidated and distributed between the Counterparts within 2 (two) working days (terms only apply to Class A Collateral).
2. In case of default, the Third Party Collateral Holder will retain the difference between the default day’s Collateral fair value minus the Contractor Counterparts principal minus the adsorbed penalties.